Open AccessInternational Real Estate Review
Author(s) -
Zhou Yu,
Hongru Guo
Publication year - 2015
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100206
Subject(s) - economics , land price , real estate , house price , economic bubble , econometrics , macroeconomics , agricultural economics , finance
In this paper, monthly data from May 2004 to December 2011 are used to calculate the equilibrium housing price predicted by the economic fundamentals of Shenzhen and additional economic fundamentals of Hong Kong under the background of the Shenzhen Hong Kong cross-border integration. Equilibrium housing price is then compared against the actual housing price to test the degree of the Shenzhen housing price bubble during the studied period. We find that aided by the economic fundamentals of Hong Kong, the Shenzhen housing price can be better explained and the gap between the actual and equilibrium housing prices can be largely reduced, thus implying a much smaller Shenzhen housing price bubble.